London 'won't be allowed to remain at centre of EU commerce after hard Brexit'

London's status as a financial hub would be dealt a blow, it was warned

London will not be allowed to remain the centre of EU financial trading if it goes “its own way” after Brexit, one of Europe’s most powerful figures declared today.

Jeroen Dijsselbloem, the head of the 19-member group of euro countries, said Brexit is “going to be a tough ride” for Britain’s economy and that London stood to lose out heavily.

“We cannot allow the financial service centre for Europe and the eurozone to be outside Europe and the eurozone and to go its own way in terms of rules and regulations,” he told MEPs in Brussels.

Mr Dijsselbloem, the Dutch finance minister, said he did not expect Britain to accept being bound by EU rules after leaving the bloc. That meant the rest of the EU would have to take a “firm stand” against London keeping its status as the main financial centre for the continent.

In another sign of irritation with the UK, Luxembourg Prime Minister Xavier Bettel said Britain cannot “have its cake and eat it”.

He ruled out any transitional Brexit deal to soften the impact if fraught negotiations are not completed in two years.

“They want to have their cake, eat it, and get a smile from the baker, but not the other things,” Bettel said. “There are European values which cannot be separated. No cherry-picking.”

His outburst was aimed at hints that Mrs May hopes to keep full access to the single market while limiting EU immigration.